International Journal of Bank Marketing

The impact of internal brand management on employee job

satisfaction, brand commitment and intention to stay

Journal: International Journal of Bank Marketing

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Manuscript ID: IJBM-02-2014-0031.R1

Manuscript Type: Research Paper

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Internal marketing, Internal brand management, Brand commitement, Job
Keywords:
satisfaction, Intention to stay
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Page 1 of 18 International Journal of Bank Marketing

1 The impact of internal brand management on employee job

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3 satisfaction, brand commitment and intention to stay
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6 Abstract
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Purpose
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11 This research examines the extent to which internal brand management, a subset of internal marketing ,
12 impacts on the three dimensions of job satisfaction, brand commitment and intention to stay.
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15 Design/methodology/approach
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17 A financial services company in Southern Africa was selected using convenience sampling. Exploratory
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factor analysis (EFA) was used to identify the dimensions of Internal Brand Management, Brand
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20 Commitment, Job Satisfaction and Intention to Stay. Partial Least Squares Path Modelling (PLSPM) was
21 used to test the model and the hypotheses. The Mann-Whitney test was used to identify any statistically
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significant differences between frontline staff and management/ support staff.
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24
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25 Findings
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28 The exploratory factor analysis of the components of Internal Brand Management did not yield the three
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29 expected dimensions. For service staff, internal brand management significantly contributes to job
30 satisfaction, brand commitment and intention to stay. Internal brand communication is the most
31 important contributor to internal brand management.
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34 Research limitations/implications
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36 In common with others, this research uses a limited sample size in a specific geographic location. The
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results may differ if replicated in other geographies or organisations.
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40 Practical implications
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Executives and managers of financial service firms are advised to drive focused internal brand
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44 management practices rather than waiting for it to become the passive consequence of human resource
45 management.
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48 Originality/value
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50 Given the paucity of research into the practical application of internal brand management, the purpose
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52 of this research is to explore the impact of internal brand management on frontline employees in the
53 financial services industry.
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55 Keywords:
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58 Internal Brand Management, Internal marketing, Brand commitment, Job satisfaction, Intention to stay
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 International Journal of Bank Marketing Page 2 of 18

1 Introduction
2 According to Jacobs (2003):
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“Bank employees are potential walking, talking advocates for your brand. Yet, the majority of
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6 financial institutions spend little time, attention or money on internal marketing and branding.
7 Many don’t even teach employees what the brand means.” “When employees are brand
8 advocates, they create brand differentiation. Companies should embrace internal branding for
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10 many reasons: It leads to increased company loyalty and job longevity; it enables employees to
11 better serve customers because they understand the brand promise; it encourages employees
12 who believe in the brand to work harder, and better. Employees should – and can be – your
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14 most valuable brand champions.” (p.23).
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16 Despite this advice from the last decade, many financial institutions continue to struggle to deliver an
17 adequate customer experience and experience high turnover among their front-line employees.
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Academic researchers continue to explore ways in which leaders can encourage commitment among
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20 bank employees Wallace et al. (2013).
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22 There is a significant body of research illustrating the importance and benefits of internal branding. In
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23 the view of Gummeson (1987), staff must be well acquainted with the “mission, goals and strategies” of
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an organization in order to deliver at the ‘moment of truth’ (p.24). Berry (2000) states “service providers
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26 make or break a brand ... (they) turn a marketer articulated brand into a customer-experienced brand”
27 (p.135). Schultz and de Chernatony (2002) contend that organizations rely on employees to deliver the
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brand promise. A customer’s first experience of a brand is frequently influenced by the job behavior and
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30 performance of frontline employees de Chernatony et al. (2003). de Chernatony and Cottam (2006)
31 describe “a brand ethos” where “employee behavior is automatically based upon the brand” (p.626).
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Punjaisri and Wilson (2007) write internal branding not only influences ‘on brand’ performance “but also
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34 influences attitudes employees have towards the brand which... affects employee performance” (p.57).
35 Morhart et al. (2009) contend that “Customers perceptions of a service brand depend highly on the
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behavior of frontline staff” (p.122).
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39 de Chernatony et al. (2003) find that when developing a service brand “more work is required in terms
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40 of organizational culture and internal branding” (p.1). The authors further state that “brand building is
41 by nature fluid, loose and emergent” (p.5). It is important for managers of service firms to actively
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43 demonstrate brand values so that frontline employees are guided and encouraged to accurately
44 represent the brand when interacting with customers. The process by which this is achieved is termed
45 ‘internal brand management’, a sub-set of internal marketing. Burmann and Zeplin (2005)
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In sharp contrast, there is a paucity of research on the direct impact of internal brand management
49 (IBM) on job satisfaction and its consequences. Thus, the purpose of this research is to explore the
50 impact of IBM on employees’ brand commitment (BC), job satisfaction (JS) and their intentions to stay
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(IS) with the organization. The results will provide some guidance to practitioners as well as academics
53 seeking to understand and justify the value of IBM.
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Page 3 of 18 International Journal of Bank Marketing

1 Background Theory and Development of Hypotheses

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3 The Evolution of Internal Brand Management from Internal Marketing
4 When introducing the concept of internal marketing, Berry et al. (1976) emphasize “that the implication
5 of the phrase be understood; i.e. by satisfying the needs of customer-affecting employees, the retail
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7 firm upgrades its capability for satisfying the needs of its customers” (p.8).
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9 This dramatic statement first appeared in the 1970’s when the concept of employees as internal
10 customers emerged. Grönroos (1984) takes the view that employees need to be both motivated and
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12 sales orientated. Critically, Grönroos (1984) seeks to influence employee customer orientation more
13 than focusing on motivation. Rafiq and Ahmed (1993) enhance the work of Berry et al. (1976) and
14 Grönroos (1984) by proposing that internal marketing is a “planned effort to overcome organizational
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resistance to change and to align, motivate and integrate employees towards the effective
17 implementation of corporate and functional strategies” (p.222). They realize that internal politics and
18 resistance to change impede the implementation of internal marketing and its sub-set internal branding.
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Varey (1995) notes that the concept of internal marketing/ internal branding stems largely from North
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21 American authors, with additional interest in the topic being shown by the Nordic academics and, to a
22 lesser extent, those in the United Kingdom.
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24 These three decades represent the key phases of thought development in Internal Marketing (IM) and
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26 Internal Brand Management (IBM). Each phase recommended implementation tools with internal
27 market research, internal communication, training and measurement occurring in at least two of the
28 three phases. Mahnert and Torres (2007)
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According to Varey (1995) internal marketing is a “management philosophy rather than a short lived
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32 campaign” (p.41). Thomson et al. (1999) state that marketing professionals have understood the
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33 importance of emotions in the external market and need to remember that internal staff are also
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“driven by the same combination of knowledge and emotions” (p.824). Berry (2000) explores this idea
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36 by stating that the “more providers internalize the concept and values of the service, the more
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37 consistently and effectively they are likely to perform it” (p.135). In an interview with Leader to Leader
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magazine (“Strategic lessons” 1998), Aaker states that clear brand identity and positioning “help(s) all
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40 employees – gauge their actions in terms of a central strategy” (as cited by Berry (2000) (p.135). Berry
41 (2000) states “nothing is more powerful than the customers’ actual experience” (p.136). Kotler (2002)
42 boldly proclaims “internal marketing must precede external marketing - it makes no sense to promote
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44 excellent service before the company’s staff is ready to provide it” (p.22). Vallaster and de Chernatony
45 (2006) emphasize “employees, just as consumers, want to be engaged in experiences that let them
46 “touch and feel” the brand.”(p.776). Fram and McCarthy (2003) remind us that employees are often
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48 consumers of their employers brand/s; either by obligation or through staff discounts. In the absence of
49 either of these “65% of employees still buy their firm’s products three out of four times” (p.28). The
50 authors add another dimension by reminding us that employees can influence “family, friends and
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52 neighbors” (p.28).
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54 Punjaisri and Wilson (2007) declare “employees are aware of the importance of their behavior
55 alignment with the brand and the consistent service delivery” (p.62). However, the authors remind us
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that “in order to ensure that employees can enact brand values to fulfil the brand promise, management
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58 have to put an effort into [sic] translating these values into daily activities” (p.67). They further report
59 the need for collaboration between “marketing and HR activities... to establish and reinforce the
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alignment of employees’ behaviors with the brand values” (p.68). Ind (2007) suggests that it is vital to
 International Journal of Bank Marketing Page 4 of 18

embed values through their assimilation into day-to-day behavior. Kapferer (2012) declares that
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2 employees should be given the freedom to identify misalignment between the internal and external
3 branding messages and take remedial action; thus participating in the evolution of the brand.
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5 IBM focuses on the internal development, strengthening and maintenance of a firm’s brand. Previous
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authors have presented many viewpoints; which will be explored in greater detail, however, to date no
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8 single definition of internal branding has been accepted; much less so a conclusive view as to what
9 makes internal branding successful or indeed how to measure success. Despite the numerous iterations
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the intent is usually driven towards employees ‘living the brand’.
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13 The concepts of internal marketing and internal brand management have evolved over time and are
14 now regarded as multi-dimensional. Unfortunately, the two terms are often applied interchangeably in
15 the literature. Furthermore, different terms have been used to describe IBM and it is useful to track
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17 these in order to understand the modern conceptualization of IBM.
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Workplace marketing: Williams (1994) implores researchers and practitioners to “shake off the
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20 shackles...and mantle of mediocrity” (p.66) to find a new way to engage with the workforce. Workplace
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marketing is defined as having four distinct steps: the removal of barriers between managers and staff,
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23 ownership and living of the brand, adding value out of one’s own volition, and outsmarting competitors.
24 Workplace marketing espouses holding both internal and external markets in the same esteem. As such,
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25 workplace marketing is seen as “an intimate encounter between old friends” (p.67). The work notes that
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27 it is not merely demotivation but also staff inability that impact wasteful marketing expenditure. This
28 “lack of employee competence undermines every traditional investment in customer service,
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29 satisfaction and loyalty”. (p.68). One of the challenges identified by this author is the allure of the
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31 external market whilst the internal is seen as a necessary evil; barely worth the time and effort.
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33 Brand Reality: Johansson and Hirano (1999) focus on Japanese companies, specifically noting, in Japan,
34 internal branding is intrinsic to the culture - where the goals of the organization and individual are
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synonymous. Japanese employees traditionally engage in life-long employment with a single
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37 organization. “Brand reality is the glue that holds the wall together,” (p.97) and is difficult to replicate.
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39 The Modern Concept of Internal Brand Management
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41 Burmann and Zeplin (2005) developed the preceding ideas into the modern concept of IBM. The authors
42 believe that three essential levers drive brand commitment in an organization, “brand-centered human
43 resources (HR) activities, brand communications and brand leadership.” (p. 286).
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Brand-centered human resource management ensures a personal identity - brand fit through
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47 recruitment, selection and employee promotion. This is followed by organizational socialization of
48 employees by way of orientation, training, social functions and mentorship programs to ensure the
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informal transmission of brand identity (BId). The brand is reinforced among employees by generating
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51 brand awareness and understanding through internal communications (BCom). Employees are
52 encouraged to ‘live the brand’ by fostering brand leadership at all levels in the organization (BLead).
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54 IBM is therefore a formative construct comprised of Brand identity (BId), Brand communication (BCom)
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56 and Brand leadership (BLead).
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Page 5 of 18 International Journal of Bank Marketing

1 Brand Commitment
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3 Burmann et al. (2009b) define brand commitment as “the extent of psychological attachment of
4 employees to the brand, which influences their willingness to exert extra effort towards reaching the
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6 brands goals, that is, to exert brand citizenship behavior and hence generate a new quality of brand
7 strength.” (p.266). Burmann et al. (2009b) originally postulate three dimensions leading to brand
8 commitment: “brand-centered human resource management, brand communication and brand
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10 leadership measures” (p.267), viewing brand commitment as a “three-dimensional construct consisting
11 of obedience, identification and internalization.” (p.266)
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13 The authors posit that Brand Commitment (BC) leads to Brand Citizenship Behavior (BCB) which is
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believed to strengthen the overall brand. Research into brand commitment leads to a number of
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16 explications: willingness to go the extra mile, Burmann et al. (2009b), Kimpakorn and Tocquer (2009);
17 cognitive brand attachment, Burmann et al. (2009a), Burmann et al. (2009b), King and Grace (2010);
18 identification with the brand, Kimpakorn and Tocquer (2009). In addition, Chang and Chang (2009)
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20 remind scholars that “many facets of internal marketing are also consistent with factors that may
21 influence organizational commitment” (p.94).
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23 Tempering expectations,Vallaster and Lindgreen (2013) caution that “affective commitment remains a
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‘privilege’ of top management. They share a greater knowledge and deeper emotional attachment than
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26 colleagues lower down” (p.303). They describe the “social interactions that induce brand commitment
27 and shared brand beliefs” as being fragile.(p. 306) O'Callaghan (2013) find that research on commitment
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has often been externally focused “with little attention afforded to internal brand commitment.” (p.
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30 478).
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32 In the case of corporate brands, such as most financial service firms, brand commitment is seen as
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33 synonymous with organizational commitment. Burmann and Zeplin (2005) andKing and Grace (2012)
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35 contend that IBM creates brand commitment. King and Grace (2012) specifically state “the employee
36 must be receptive to the organization’s efforts to develop mutually beneficial relationships” (p.472).
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38 This results in the following hypothesis:
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40 H1: Internal brand management (IBM) will have a positive effect on brand commitment
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42 (BC).
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Job Satisfaction
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47 The term ‘job satisfaction’ cited by Tsai et al. (2010) “is proposed by Hoppock (1935) who suggests that
48 job satisfaction means employees’ emotions and attitude toward their jobs” (p.4119). Zeithaml et al.
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(1988) find empirical evidence to suggest that the frequency, quality and accuracy of downward
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51 communication moderates employee role ambiguity and increases job satisfaction. Arnett et al. (2002)
52 declare “both job satisfaction and pride in the organization are important antecedents of positive
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employee behavior” (p.94). This is congruent with the Rafiq and Ahmed (2000) model of internal
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55 marketing for services. Gounaris (2008) and Tsai et al. (2010) find internal marketing positively
56 influences job satisfaction among hospitality industry employees in Greece and Taiwan respectively.
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When the appropriate IBM is implemented, employees have greater job satisfaction, brand
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59 commitment, and a lower propensity to quit. Tsai et al. (2010). Peltier et al. (2013) find internal
60 relationship marketing improves job satisfaction among nurses in three USA based healthcare
 International Journal of Bank Marketing Page 6 of 18

institutions. In sharp contrast, Boyd and Sutherland (2006) find that job satisfaction is not a prerequisite
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2 to ‘living the brand’ with the authors suggesting a re-think amongst those in Human Resource
3 management.
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5 Based on previous research, the balance of evidence suggests that the following hypothesis be posited:
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7 H2: Internal brand management (IBM) will have a positive effect on job satisfaction (JS)
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The organizational behavior literature is replete with both theoretical and empirical evidence that
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11 organizational commitment fully or partially mediates the relationship between job satisfaction and
12 turnover intention, e.g. Schaubroeck et al. (1989). Firth et al. (2004) examining a retail setting find
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“Intention to quit is largely influenced by job dissatisfaction, lack of commitment to the organization and
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15 feelings of stress.” (Job stressors) (p.181).
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17 Siong et al. (2006) in testing the work of Firth et al. (2004) in a call center setting; highlight the need for
18 managers to be cognizant of the fact that “call centers are highly stressful workplaces” leading to “a loss
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20 of commitment to the organization” (p.239).
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22 This leads to the following hypothesis:
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24 H3: Brand commitment (BC) mediates the relationship between job satisfaction (JS) and
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25 employees’ intention to stay (IS)

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These hypotheses are illustrated in a path diagram presented in Figure 1:
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30 Insert Figure 1 about here
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Research Methodology
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34 Sampling
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36 This research was conducted using a convenience sample. A single financial services firm operating in
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37 Southern Africa was selected. The call center executive invited all frontline employees, supervisors,
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managers, and support staff to participate in the survey. The 175 employees were invited to
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40 anonymously complete a questionnaire using SurveyMonkey. All responses were returned to one of the
41 authors for further analysis.
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Instrument Development
45 The dimensions of internal brand marketing (IBM) were adapted from the Burmann et al. (2009a)
46 instrument. IBM was modeled as a second order, formative construct of brand identity (BId), brand
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48 communication (BCom) and Brand leadership (BLead).
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50 Brand commitment was adapted from the Burmann et al. (2009b), King and Grace (2010) and King and
51 Grace (2012) instruments. Job satisfaction (JS) and intention to stay (IS) were adapted from Firth et al.
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(2004) and Siong et al. (2006). Respondents were asked to rate all questions using a seven-point Likert
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54 scale. The questionnaire is presented in the Appendix.
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56 Method of Analysis
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58 Exploratory factor analysis (EFA) was used to identify the dimensions of IBM, BC, JS and IS. Due to the
59 fact that the components of IBM are formative rather than reflective, structural equation modeling
60 could not be used to test the model. Partial least squares path modeling (PLSPM) was selected to test
Page 7 of 18 International Journal of Bank Marketing

the model as this method can deal with both formative and reflective constructs, small sample sizes and
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2 data that is not normally distributed. The Mann-Whitney test was used to identify any statistically
3 significant differences between frontline staff and management/ support staff.
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6 Results
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8 Sample
9 A total of 156 useable responses were received representing a response rate of 89%. The average age of
10 respondents was 29.4 years, 79.9% of the respondents were female, whilst 75.6% of the sample
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12 comprised frontline staff - the balance being supervisory or support staff.
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14 Exploratory Factor Analysis
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16 The 15 questions pertaining to the theoretical dimensions of IBM were subject to principal component
17 factor analysis. Several questions failed to load uniquely or had a communality of less than 0.5 in a three
18 factor solution. After excluding these variables, three factors emerged which are similar to, but not the
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20 same as, the theoretical components viz. internal brand communication (BInt), brand identity (BId) and
21 external brand communication (BExt).These results are presented in Table I, in which construct validity
22 and internal reliability are apparent. It is interesting to note that the exploratory factor analysis of the
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components of IBM did not yield the three expected dimensions. Brand leadership failed to emerge as a
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25 component and brand communication separated into two distinct components, viz. internal and
26 external communication. Internal brand communication is the strongest component of internal brand
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management (0.557 versus 0.350 and 0.329 for brand identity and external communication
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29 respectively).
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31 Insert Table I about here
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33 The exploratory factor analysis for BC was uni-dimensional and retained all questions with high
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construct validity and internal reliability (Table I). In the case of JS, while two of the questions had
36 communality slightly less than 0.5, construct validity and internal reliability are well within acceptable
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37 limits. Two items did not load onto job satisfaction, viz. job security and physical working conditions. The
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fact that these two aspects of extrinsic job satisfaction did not load onto job satisfaction is probably
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40 attributable to the good working and employment conditions in the organization. In the case of IS, uni-
41 dimensionality could only be achieved by excluding one of the questions and yet again construct validity
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and internal reliability was achieved.
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45 Path Model
46 The PLSPM model presented in Figure 1 was run using the 2014 version of the XLSTAT PLSPM software
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48 package. The PLS algorithm was used to determine the path coefficients and 1,000 bootstrap samples
49 were used to establish the 95% confidence limits of these coefficients.
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51 Face validity of the manifest variables is claimed by the fact that all the questions used are based on
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previously validated instruments. Convergent validity of the latent variables is illustrated by the factor
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54 loadings, average variance extracted and composite reliability as presented in Table I. Discriminant
55 validity is illustrated in Table II where the average variance extracted for the latent variables exceeds the
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squared correlations between that latent variable and all other latent variables.
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59 Insert Table II about here
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 International Journal of Bank Marketing Page 8 of 18

The absolute and relative goodness of fit indices for the model are 0.619 and 0.907 respectively -
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2 indicating an adequate model. The explanatory power of the model is adequate with R2 values of the
3 latent variables JS, BC and IS being 0.367, 0.520 and 0.490 respectively. (IBM is a second order formative
4 construct and thus has a R2 value of 1 by definition.) The path coefficients (direct effects), indirect and
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6 total effects for the model are presented in Table III and the final path model is illustrated in Figure 2.
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8 Insert Table III and Figure 2 about here
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10 The postulated path model is confirmed by this research and all three hypotheses are supported. It is
11 interesting to note that BC fully mediates the relationship between JS and IS. Examining the indirect and
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13 total effects of the path model yields several interesting points:
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15 • While the direct effect of job satisfaction and internal brand management on the brand are
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17 similar in magnitude (0.422 and 0.383 respectively), the total effect of internal brand
18 management is larger than that of job satisfaction (0.638 versus 0.422);
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20 • Brand commitment is the largest contributor to intention to stay (0.610) followed by internal
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22 brand management (0.465).
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Difference in Latent Variable Scores
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26 Of the 156 respondents, 118 were front-line staff (i.e. customer service agents) and 38 were support
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28 staff (supervisory staff, quality assessors, resource planners). The Mann-Whitney test was used to
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29 determine any statistically significant differences in the latent variable scores between these two
30 groups. These are presented in Table IV.
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32 Insert Table IV approximately here
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35 Except for JS, and possibly BC, latent variable scores are not statistically significantly different between
36 front-line staff and support staff. The higher JS and BC scores for support staff are probably explained by
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37 the fact that, in this organization, support staff is usually promoted through the ranks, from customer
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service agent to their present managerial or support position.
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Conclusion
43 Implications for Management
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45 King et al. (2013) find that during an economic downturn, an employee’s opportunity to leave the firm
46 may be limited. Service industry managers face a barrage of cost saving initiatives. Key among these is
47 the cost of staff driving the inclination to use part-time or temporary workers. According to Vallaster
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49 and Lindgreen (2013) this “reinforces the existing low-skill/ low-pay image problem and moves the
50 delivery of internal value out of sight”, bringing into question a significant challenge faced by
51 management, “namely, how to make an occupation so attractive, despite its temporary or low-paying
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53 character, that an employee decides to go the extra mile.” (p. 308)
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55 The results of this research confirm that for the financial service firm studied, internal brand
56 management could play an important role in solving this dilemma.
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58 Internal brand management was found to be a major contributor to job satisfaction, brand commitment
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60 and intention to stay for service staff. While brand identity and external brand communication play
Page 9 of 18 International Journal of Bank Marketing

important roles in creating sound internal brand management, internal brand communication is the
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2 most important contributor.
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4 A successful internal brand management program would result in front-line employees living the brand
5 while interacting with customers. Ind (2007) states that “the best way to develop a brand that has a high
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degree of relevance and consistency is to ensure that the employees of an organization understand and
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8 believe in the values of the organization.” (p. 24). He goes on to say that “living the brand requires
9 commitment and sincerity and that means it has to permeate the whole organization.”(p.105). Wallace
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and De Chernatony (2011) find that internal branding is often a top down approach with little, if any,
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12 inclusion of employees in the design of the process, leading to employee resistance to the message.
13 Internal brand management strives to deliver staff who are ‘living the brand’ values, delivering an on-
14 brand experience; resulting in customers being well served. Greene et al. (1994) note “banks often
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16 shackle their contact employees with policy manuals or strict rules” (p.10) resulting in rigid rather than
17 client centric service. It would be prudent for management to carefully craft the brand message for staff
18 and to actively pursue robust internal brand management practices rather than allowing it to become
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20 the passive consequence of human resource management.
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22 Implications for Future Research
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24 This research was conducted in a single financial services firm in a single geographic location. In order to
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25 generalize the findings, further studies are required in different firms and different locations.
26 Furthermore, it would be useful to test a framework of best practices for effective internal brand
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management, such as those proposed by Mahnert and Torres (2007) and Ind (2007).
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30 Furthermore, research building on that conducted by Schultz (2004), into the reasons why internal
31 brand management fails is also warranted to better understand the processes involved.
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33 The fact that brand leadership did not emerge as a component of internal brand management while
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internal and external communications separated out as independent factors is interesting. Recently
36 Porricelli et al. (2014), conducted research in a grocery retail chain in the USA. Using the same
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37 instrument they validated the theoretical dimensions originally identified by Burmann et al. (2009a).
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Future research could establish whether this result is: specific to the organization studied, typical of
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40 financial service firms or if the components of internal brand management are context specific.
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 International Journal of Bank Marketing Page 10 of 18

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Chang, C. S. and Chang, H. C. (2009), "Perceptions of Internal Marketing and Organisational
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 International Journal of Bank Marketing Page 14 of 18

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2
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8 BId JS
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H
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14 BCom IBM H IS
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20 BLead BC
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Figure 1: Postulated Model
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38 0.606 0.124
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41 0.350
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43 BICom IBM 0.422 IS
44 0.557
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49 0.329 0.383 0.610
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BECom BC
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55 Figure 2: Path coefficients of final model
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Page 15 of 18 International Journal of Bank Marketing

Table I Measurement Model

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2
3 Constructs and instrument variables SL AVE Rho
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5
Brand Identity (BId) 0.741 0.895
6
The description of our brand identity is understandable 0.895
7
8 The description of our brand identity is easy to memorize 0.910
9 The description of our brand identity is convincing 0.772
10 Internal Brand Communication (BICom) 0.628 0.893
11 I know the origin and tradition of our brand 0.739
12 I feel well informed by our headquarters about our brand 0.894
13
I feel well informed by my direct manager about our brand 0.855
14
15 I often discuss brand issues with my colleagues 0.680
16 In our company there are stories/anecdotes circulating that express what our 0.774
17 brand stands for
18 External Brand Communication (BECom) 0.930 0.930
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19 When I see advertising for our brand, I am proud to be working for this brand 0.932
20 What I read in the news/press about our brand motivates me 0.932
21 Brand Commitment (BC) 0.775 0.960
22 I will work harder than I am expected in order to make ….. successful 0.759
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23 I am proud to work for ….. 0.922
24 I feel very loyal to ….. 0.917
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I talk about ….. to my friends as a great company to work for 0.899
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I really care about the future of ….. 0.878
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28 My values are similar to those of ….. 0.859
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29 I feel like I really fit in at ….. 0.918

30 Job Satisfaction (JS) 0.660 0.921
31 I am satisfied with my fringe benefits 0.809
32 I am satisfied with the pay I receive for my job 0.828
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33 I am satisfied with the recognition that I get when I have done a good job 0.831
34 I am satisfied with the freedom you have to do the best you can at your job 0.783
35 I am satisfied with my opportunities for career advancement 0.892
36 I am satisfied with the type of work I do 0.723
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37 Intention to Stay (IS) 0.682 0.869

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I plan to be working for ….. five years from now 0.784
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I am likely to be looking for a new job in the next year (R) 0.822
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I am presently looking for a new job (R) 0.881
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Notes: SL standardized loading; AVE average variance extracted; Rho composite reliability; (R) indicates that statement is
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44 reverse scored.
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 International Journal of Bank Marketing Page 16 of 18

Table II Discriminant Validity

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2 BId BICom BECom JS BC IS AVE
3 BId 1 0.741
4 BICom 0.242 1 0.628
5 BECom 0.186 0.212 1 0.868
6 JS 0.101 0.286 0.354 1 0.660
7
BC 0.151 0.218 0.435 0.458 1 0.775
8
9 IS 0.136 0.099 0.248 0.288 0.481 1 0.682
10 AVE 0.741 0.628 0.868 0.660 0.775 0.682
11 Note: In this table the squared correlations between the latent variables are compared to their AVE’s.
12
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15 Table III: Path Effects
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Path Direct Indirect Total
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BId
IBM 0.350** - 0.350
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20 BICom
IBM 0.557** - 0.557
21 BECom
IBM 0.329** - 0.329
22
BId
JS - 0.212 0.212
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24 BICom
JS - 0.337 0.337
BECom
JS
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25 - 0.199 0.199
26 IBM
JS 0.606** - 0.606
27 BId
BC - 0.223 0.223
28
BICom
BC - 0.355 0.355
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30 BECom
BC - 0.210 0.210
31 IBM
BC 0.383** 0.256 0.638
32 JS
BC 0.422** - 0.422
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BId
IS - 0.163 0.163
35 BICom
IS - 0.259 0.259
36 BECom
IS - 0.153 0.153
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37 IBM
IS - 0.465 0.465

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JS
IS 0.124 0.257 0.382
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0.610**
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40 BC
IS - 0.610
**
41 Note: Path coefficient significant at the 5% level.
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Page 17 of 18 International Journal of Bank Marketing

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2
Table IV: Differences in Latent Variable Scores (Mann-Whitney test)
3
4
5 Latent Variable Front-line staff (n=118) Support staff (n=38)
6 BId 5.58 5.51
7 BICom 5.16 5.41
8 BECom 5.22 5.52
9
IBM 5.29 5.47
10
11 JS 4.54 5.35**
12 BC 5.53 5.98*
13 IS 4.87 5.27
14 * **
Note: Significant difference at a 10% level; significant difference at a 5% level
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 International Journal of Bank Marketing Page 18 of 18

Appendix: Questionnaire
1
2
3
Please indicate the extent to which you agree with the following statements about the ..... brand.
4 BId1 The description of our brand identity is understandable
5 BId2 The description of our brand identity is easy to memorize
6 Bid3 The description of our brand identity is convincing
7 BLead1 I know the origin and tradition of our brand
8 BLead2 I know the core competences of our brand
9 BLead3 I know the values our brand stands for
10 BLead4 I know the personality of our brand
11 BLead5 I know the vision for our brand
12 BLead6 I know how I am expected to behave to ensure that our brand has a positive brand image with
13 BCom1 I feel well informed by our headquarters about our brand
14 BCom2 I feel well informed by my direct superior about our brand
15 BCom3 I often discuss brand issues with my colleagues
16 BCom4 In our company there are stories/anecdotes circulating that express what our brand stands for
17 BCom5 When I see advertising for our brand, I am proud to be working for this brand
18 BCom6 What I read in the press about our brand motivates me
Fo
19 BC1 I will work harder than I am expected to in order to make ..... successful
20 BC2 I am proud to work for .....
21 BC3 I feel very loyal to .....
22 BC4 I talk about ..... to my friends as a great company to work for
r
23 BC5 I really care about the future of .....
24 BC6 My values are similar to those of .....
BC7 I feel like I really fit in at .....
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26 JS1 I am satisfied with my job security
27 JS2 I am satisfied with my physical working conditions (e.g. seating, lighting, ventilation, etc.)
28 JS3 I am satisfied with my fringe benefits
JS4 I am satisfied with the pay I receive for my job
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30 JS5 I am satisfied with the recognition that I get when I have done a good job
31 JS6 I am satisfied with the freedom I have to do the best I can at my job
32 JS7 I am satisfied with my opportunities for career advancement
JS8 I am satisfied with the type of work I do
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34 IS1 I plan to be working for ..... five years from now
35 IS2 I am likely to be looking for a new job in the next year (R)
36 IS3 I seldom think about leaving .....
IS4 I am presently looking for a new job (R)
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38 Notes: The questions were rated on the following 7-point Likert scale: Strongly disagree, disagree,
39 somewhat disagree, neither agree nor disagree, somewhat agree, agree, strongly agree. R indicates that
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40 the questions was reverse scored.

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